CIC Invests About $2 Billion in Alibaba Group

China’s sovereign wealth fund invested about $2 billion in Alibaba Group Holding Ltd. as the Chinese internet company bought back a large stake owned by Yahoo Inc., according to people with knowledge of the deal.

Alibaba said late Tuesday that it had completed an initial buyback of half of Yahoo’s 40% stake in Alibaba in a deal valued at approximately $7.6 billion. China Investment Corp. led a consortium of Chinese investors including buyout funds Boyu Capital, Citic Capital, and China Development Bank Corp.’s private-equity arm.